July 24, 2010
By Laura du Preez
If you find an old policy document in your files or those of a family member and the life assurance company no longer exists, there is an easy way to find out if the policy is still in force and which company has taken it over.
The Association for Savings & Investment South Africa (Asisa) will provide you with a form that you can complete, including the policyholder's details, and the form will be circulated among Asisa's member companies.
Member life companies must check the details against their records. If the policy is still in existence, the relevant life company must inform you within seven days. The company may need to satisfy itself that you have a valid interest in the information about the policy.
You can also contact Asisa if you believe a deceased family member had a policy and you are not sure of the assurer's details.
Life companies that belong to Asisa subscribe to the organisation's code on unclaimed benefits, which sets out the steps that companies must take to trace policyholders or beneficiaries where benefits remain unclaimed for more than six months.
In terms of the code, member companies must take reasonable steps to trace the last known address of the policyholder and/or beneficiaries.
The company has 60 days to send a letter, fax or email to this address, informing the policyholder and/or beneficiaries of the benefit. If no response is received within 30 days, the company must ask the policyholder's intermediary to try to trace the policyholder or any beneficiaries. If the benefits remain unclaimed, this process must be repeated once more after three years.
Asisa has also appointed an unclaimed assets work group, which has drafted a new standard for member companies that is aimed at improving the process of tracing policyholders and their beneficiaries. The work group was also asked to look at the ways in which Asisa member com-panies should treat unclaimed benefits, Asisa says.
The draft standard has been sent to representatives of various member companies for feedback. Once the responses have been considered and incorporated into the draft standard, it will be submitted to Asisa's life and risk board committee for approval.
Asisa says all assurers keep the proceeds of a policy and pay them out no matter how long it takes for the beneficiaries or policyholder to come forward and claim the benefit.
You can contact Asisa on 021 673 1620 or you can download a "Lost policy circular form" to inquire about the policy of a deceased relative. From the home page, www.asisa.org.za, go to "Info centre" and then "Long term insurance".
  
 
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